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AirAsia to soar higher in Indonesian skies

Malaysia-based budget carrier Air Asia is considering further expanding flight services to Indonesia’s emerging tourist destinations to take advantage of the government’s commitment to boosting tourism

Fedina S. Sundaryani and Ina Parlina, Farida Susanty (The Jakarta Post)
Jakarta
Thu, August 25, 2016

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AirAsia to soar higher in Indonesian skies

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alaysia-based budget carrier Air Asia is considering further expanding flight services to Indonesia’s emerging tourist destinations to take advantage of the government’s commitment to boosting tourism.

The plan was unveiled by AirAsia Group CEO Tony Fernandes following a meeting with President Joko “Jokowi” Widodo in Jakarta on Wednesday. However, Fernandes declined to disclose the four to five new areas the company was considering flying to.

“I mean obviously all the new places we are looking at we think can be some way different with Bali, some like Bandung, some like Bali. Your country has so much to offer,” he said, adding that the regions being considered spanned the country.

The airline would not only fly to areas with natural attractions such as beaches, but also to destinations with potential in ecotourism, shopping and culture, he said. “If you look at Yogya, that’s not a beach. That’s fantastic history and culture. We have been studying all the places that we think can make the next Bandung or the next Bali,” he said.

The airline supports the government’s program to place tourism among five strategic sectors to be developed under Jokowi’s administration. The country has also set a goal of attracting 20 million foreign tourists by 2019, double the figure it saw last year.

The government is developing 10 emerging destinations across the country to reduce reliance on Bali, which still serves as the country’s main tourist gateway at present.

The new destinations include Mandalika in West Nusa Tenggara, Tanjung Lesung in Banten, Wakatobi in Southeast Sulawesi, Lake Toba in North Sumatra and Morotai in North Maluku.

AirAsia’s Indonesian subsidiary, Indonesia AirAsia (IAA), is also considering opening international routes such as from Kuala Lumpur to Bandung, West Java, as it would become the first local airline to do so.

Fernandes has repeatedly said on previous occasions that “Indonesia is more than Bali”.

“We believe that we can add almost 6 million tourists to the country as what we committed to the president. That could bring in about US$39 billion in terms of economic wealth to Indonesia,” he said.

Jokowi and Fernandes also discussed the capital structure of local airlines and the possibility of relaxing several regulations including the ownership of airline operators.

Fernandes previously stated that the foreign ownership cap of 49 percent set by the government had become a barrier for airlines like AirAsia in investing more in the country.

Meanwhile, AirAsia is not the only carrier planning to spread its wings in the archipelago.

The low-cost arm of national flag carrier Garuda Indonesia, Citilink, plans to expand to Jayapura, Papua, this year, which would be its first destination in eastern Indonesia.

“We are looking at the possibility of transiting in either Makassar, South Sulawesi or Surabaya, East Java,” Citilink president director Albert Burhan said.

The service, which is expected to run daily from Jakarta to Jayapura, is set to begin in October.

Citilink also cited its interest in operating charter flights from Manado in North Sulawesi to Morotai, to meet demand from Chinese tourists.

Transportation Ministry director general Suprasetyo said the government was committed to improving infrastructure in tourist areas, especially in the 10 emerging destinations. It aims to allocate Rp 199.65 billion ($15 million) next year to improve airports in 11 locations.

He also said the ministry would not mind handing over airports in tourist areas to state airport operator Angkasa Pura (AP) if necessary for better development, as seen in the case of Silangit Airport in North Sumatra, near Lake Toba.

“If it’s ready to be operated commercially, go ahead,” he said.

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